News Release
BOEING, ROCKWELL AEROSPACE AND DEFENSE UNITS TO MERGE
SEAL BEACH, Calif., Dec. 5, 1996--The Boeing Company will
acquire Rockwell's aerospace and defense units in a transaction valued
at approximately $3.1 billion following approval by Rockwell
shareholders yesterday. The closing of the transaction is scheduled
for tomorrow, Dec. 6, 1996, pending resolution of some remaining
issues.
The move creates one of the strongest aerospace and defense
operations in the world with more than 50,000 employees, combined 1995
revenues of $8.7 billion, and expertise in space transportation,
launch systems, rocket engines, power systems, satellites, missiles,
missile defense, helicopters, military airplanes, guidance and
navigation systems, electronics and communications systems.
It also unites two companies with a proud heritage in the
exploration of space and defense of the United States.
The Rockwell units will be renamed Boeing North American,
Inc., and will operate as a subsidiary of The Boeing Company. The
subsidiary will report to Boeing Defense & Space Group, which has
headquarters in Kent, Wash. Boeing North American will have 21,000
employees, 13,000 of them in Southern California.
"This is a major milestone for Boeing," said Jerry King,
Boeing Defense & Space Group president. "It accelerates us to
achieving our 20-year vision, which calls for Boeing to be a fully
integrated aerospace company designing, producing and supporting
commercial airplanes, defense systems, and defense and civil space
systems.
"The assets and capabilities we are acquiring are an
extremely good strategic fit with our long-term objective of creating
stockholder value. It also makes Boeing a major employer in
California.
"We anticipate that our defense and space businesses will
continue to grow," King said. "We expect the product of this merger to
be more efficient as a major contract bidder than the two parts were.
"Recent contract wins on several key programs, including the
Joint Strike Fighter, Airborne Laser and GPS
satellites, indicate we have good reason for optimism," King
said.
"The people of Rockwell's aerospace and defense units have
been anxiously anticipating this day for the past four months," said
John McLuckey, president of the new subsidiary. "We have absolutely no
doubt that the future of our businesses will be stronger as a part of
Boeing.
"We see synergistic growth opportunities in many areas,"
McLuckey added. "To ensure that we fully address those opportunities,
we have formed eight Integrated Marketing Teams that cut across the
two businesses. In addition, we are combining our Washington D.C.
offices and field offices so that we can present a unified team to our
customers."
In addition to his role as president of Boeing North
American, McLuckey also has been named an executive vice president of
Boeing Defense & Space Group.
Boeing and Rockwell have worked side by side often over
the past 80 years. Both have built aircraft to defend the nation,
including such bombers as the B-2, B-1B, B-52, B-29, B-25 and B-17;
and fighters such as the F-22, F-100, F-86 and P-51. They also have
cooperated on major space programs such as the NASA International
Space Station, Space Shuttle and the Apollo moon landings.
With the acquisition of the Rockwell units, Boeing will have
approximately 145,000 employees involved in aerospace and defense
programs and commercial airliner design and production.
Boeing North American headquarters will be in Seal Beach,
with major operations throughout Southern California as well as
Alabama, Florida, Georgia, Iowa, Louisiana, Mississippi, Ohio,
Oklahoma, Texas and Australia.
In addition to its Seattle-area operations, Boeing Defense &
Space Group has major operations in Alabama, California, Florida,
Kansas, Oklahoma, Pennsylvania, Tennessee and Texas.
BOEING, ROCKWELL AEROSPACE AND DEFENSE UNITS TO MERGE
SEAL BEACH, Calif., Dec. 5, 1996--The Boeing Company will
acquire Rockwell's aerospace and defense units in a transaction valued
at approximately $3.1 billion following approval by Rockwell
shareholders yesterday. The closing of the transaction is scheduled
for tomorrow, Dec. 6, 1996, pending resolution of some remaining
issues.
The move creates one of the strongest aerospace and defense
operations in the world with more than 50,000 employees, combined 1995
revenues of $8.7 billion, and expertise in space transportation,
launch systems, rocket engines, power systems, satellites, missiles,
missile defense, helicopters, military airplanes, guidance and
navigation systems, electronics and communications systems.
It also unites two companies with a proud heritage in the
exploration of space and defense of the United States.
The Rockwell units will be renamed Boeing North American,
Inc., and will operate as a subsidiary of The Boeing Company. The
subsidiary will report to Boeing Defense & Space Group, which has
headquarters in Kent, Wash. Boeing North American will have 21,000
employees, 13,000 of them in Southern California.
"This is a major milestone for Boeing," said Jerry King,
Boeing Defense & Space Group president. "It accelerates us to
achieving our 20-year vision, which calls for Boeing to be a fully
integrated aerospace company designing, producing and supporting
commercial airplanes, defense systems, and defense and civil space
systems.
"The assets and capabilities we are acquiring are an
extremely good strategic fit with our long-term objective of creating
stockholder value. It also makes Boeing a major employer in
California.
"We anticipate that our defense and space businesses will
continue to grow," King said. "We expect the product of this merger to
be more efficient as a major contract bidder than the two parts were.
"Recent contract wins on several key programs, including the
Joint Strike Fighter, Airborne Laser and GPS
satellites, indicate we have good reason for optimism," King
said.
"The people of Rockwell's aerospace and defense units have
been anxiously anticipating this day for the past four months," said
John McLuckey, president of the new subsidiary. "We have absolutely no
doubt that the future of our businesses will be stronger as a part of
Boeing.
"We see synergistic growth opportunities in many areas,"
McLuckey added. "To ensure that we fully address those opportunities,
we have formed eight Integrated Marketing Teams that cut across the
two businesses. In addition, we are combining our Washington D.C.
offices and field offices so that we can present a unified team to our
customers."
In addition to his role as president of Boeing North
American, McLuckey also has been named an executive vice president of
Boeing Defense & Space Group.
Boeing and Rockwell have worked side by side often over
the past 80 years. Both have built aircraft to defend the nation,
including such bombers as the B-2, B-1B, B-52, B-29, B-25 and B-17;
and fighters such as the F-22, F-100, F-86 and P-51. They also have
cooperated on major space programs such as the NASA International
Space Station, Space Shuttle and the Apollo moon landings.
With the acquisition of the Rockwell units, Boeing will have
approximately 145,000 employees involved in aerospace and defense
programs and commercial airliner design and production.
Boeing North American headquarters will be in Seal Beach,
with major operations throughout Southern California as well as
Alabama, Florida, Georgia, Iowa, Louisiana, Mississippi, Ohio,
Oklahoma, Texas and Australia.
In addition to its Seattle-area operations, Boeing Defense &
Space Group has major operations in Alabama, California, Florida,
Kansas, Oklahoma, Pennsylvania, Tennessee and Texas.